A July 2016 notice from the Treasury Department and IRS was published in the Federal Register to provide the oil reference price for the enhanced oil recovery credit. The July 2016 notice explained that given the oil reference price was dramatically lower than last year, the enhanced oil recovery credit would possibly be available in 2016 for the first time since 2005. Subsequently, the IRS issued Notice 2016-44 providing the enhanced oil recovery inflation adjustment factor.
In the Internal Revenue Bulletin [PDF 124 KB] released for August 22, 2016, the IRS included Announcement 2016-29 to correct Notice 2016-44 on the enhanced oil recovery inflation adjustment factor. Specifically, Announcement 2016-29 provides the following correction:
In the third paragraph, the calculation providing that $28 multiplied by 1.6464 = $46.01 is incorrect. The calculation should instead state that $28 multiplied by 1.6464 = $46.10.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.